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Scottish Power unveils price rise More firms increase energy bills
(20 minutes later)
Scottish Power has said it is increasing gas prices by an average of 34% and electricity prices by 9%, blaming soaring wholesale costs. Two more energy firms have said they will increase gas and electricity prices, blaming higher wholesale costs.
The price increases will come into effect on Monday 1 September. Scottish Power said it would raise gas prices by an average of 34% and electricity prices by 9%, effective from Monday 1 September.
The firm said it was "forced to follow other energy providers" becoming one of the last major suppliers to announce higher prices for domestic customers. Soon after, Npower said domestic customers would see an average rise of 14% for electricity and 26% for gas, effective immediately.
Other providers that have raised prices include E.On, Scottish and Southern Energy, British Gas and EdF. E.On, British Gas, EdF and Scottish and Southern Energy have all raised prices.
Scottish Power said it was "forced to follow other energy providers", becoming one of the last major suppliers to announce higher prices for domestic customers.
"These are difficult times and we understand the financial impact this announcement will have on our customers," said Willie MacDiarmid, Scottish Power's director of energy retail."These are difficult times and we understand the financial impact this announcement will have on our customers," said Willie MacDiarmid, Scottish Power's director of energy retail.
He added that the volatility in the gas market was contributing to higher UK domestic prices.He added that the volatility in the gas market was contributing to higher UK domestic prices.
Dual fuel customers will see their bills increase by an average of 25%.Dual fuel customers will see their bills increase by an average of 25%.
Scottish Power also said it planned to spend £40m on steps to help protect vulnerable customers over the next three years.Scottish Power also said it planned to spend £40m on steps to help protect vulnerable customers over the next three years.
The firm, owned by Spain's Iberdrola, is to invest £2.8bn from 2008 to 2010.The firm, owned by Spain's Iberdrola, is to invest £2.8bn from 2008 to 2010.
Raw materials
Npower said: "Today's price rises are due to massive increases in wholesale costs which make current pricing levels unsustainable, following a price decrease in 2007 and an increase at the start of 2008."
"Until today Npower's domestic gas prices were still the same level they were 18 months ago - whereas, during this time, the cost of wholesale gas has doubled," said the firm.
The firm also said electricity generation is was directly affected by "soaring raw material prices, which have risen by 122% for gas and coal, and 79% for oil, over the last 12 months".